Imagination updates MIPS Roadmap

After mentioning it in the annual results rns, a few days ago Imagination gave further details on the 'Warrior' MIPS Series 5 nex-gen CPU cores.
IMG hopes to win 25% of new CPU designs in 5 years time. Fair to say most in the financial and technology sectors are highly sceptical about this venture (as reflected in the SP), we will see....

MIPS Aptiv generation updated; new 32/64-bit MIPS ‘Warrior’ generation added to roadmap

London, UK – 26 June, 2013 – Imagination Technologies (IMG.L), a leading multimedia, processor, communications and cloud technologies company, announces new details about its current and future MIPS CPU portfolio.

Imagination has updated its current portfolio of MIPS Aptiv cores, extending each of the Aptiv families with new core configurations. In addition, later this year Imagination will start rolling out an entire generation of new MIPS CPUs, including 32-bit and 64-bit cores. The new MIPS Series5 generation of CPU cores, codenamed ‘Warrior,’ will incorporate new architectural features and provide best-in-class performance and efficiency for a wide range of applications.

New in MIPS Aptiv

Imagination has extended the award-winning MIPS Aptiv generation of cores, adding a very small-footprint single-core version to the interAptiv family and a floating point version to the microAptiv family. The high-performance proAptiv, multi-threaded interAptiv and compact microAptiv families of cores, are all available in refined, validated configurations offering industry-leading low power and efficiency for today’s designs.

·         The proAptiv family comes in configurations from single through to six-core versions with optional hardware floating point.

·         The interAptiv family includes hardware multi-threading and now comes in single-, dual- and quad-core configurations with optional floating point. The new single-core version of interAptiv removes the extra logic associated with multi-core coherency and L2 cache controller, providing a highly-efficient, multi-threaded single-core processor.

·         The microAptiv family is available in versions targeting microcontrollers and deeply embedded processors, and now incorporates an optional hardware floating point unit for applications including electric metering and motor control.

MIPS Roadmap

Imagination will introduce next-generation MIPS ‘Warrior’ cores later this year. Details of the cores are already being shared with key MIPS customers.

The ‘Warrior’ generation of cores will include 32-bit and 64-bit variants with a focus on superior performance efficiency across the high-end, mid-range and entry-level/microcontroller CPUs. These cores are based on the heritage of MIPS, the industry’s most efficient RISC architecture, targeted to deliver the best performance and lowest power consumption in a given silicon area.

Building on the true 32-bit and 64-bit instruction set compatibility of MIPS, ‘Warrior’ cores will provide binary compatibility from the entry-level to the high-end. 64-bit ‘Warrior’ cores have no need for excess ‘baggage’ to execute legacy 32-bit code, and the broad range of tools and applications built for the 64-bit MIPS architecture over the past 20+ years will seamlessly work with ‘Warrior’ cores.

Key ‘Warrior’ features will include:

·         Hardware virtualization across the entire range of cores, providing compelling benefits for applications from compute-intense enterprise environments to energy efficient mobile platforms

·         MIPS hardware multi-threading technology, enabling better overall throughput, quality of service (QoS), and power/performance efficiency in select ‘Warrior’ cores

·         Imagination’s unique, extensible and highly scalable security framework for applications including content protection on mobile devices, secure networking protocols and payment services

·         MIPS SIMD architecture (MSA), built on instructions designed to be easily supported within high-level languages such as C or OpenCL for fast and simple development of new code, as well as leverage of existing code

·         A consistent and comprehensive toolchain across the ‘Warrior’ series for fast, easy development and debugging

MIPS – the choice in CPU IP

Hossein Yassaie, CEO, Imagination, says: “The industry is longing for a choice in the CPU market, and we are making MIPS a clear and superior alternative. We have an outstanding range of cores available today and that will be complemented by our forthcoming ‘Warrior’ cores, which will provide levels of performance, efficiency and functionality that go beyond other offerings in the market.

“As we share Imagination’s comprehensive, market-leading MIPS core roadmap with customers worldwide, we are receiving an overwhelmingly positive response. With MIPS, we are creating a solution that a wide range of customers can benefit from and commit to for the long term, across applications ranging from tiny embedded devices to 64-bit many-core products for networking and beyond. We are confident that as we roll out the technologies on our MIPS roadmap, we will change the landscape for CPU IP.”

Says J. Scott Gardner, senior analyst, The Linley Group / Microprocessor Report: “The MIPS Aptiv CPU core portfolio was named the ‘Best Processor IP of 2012’ in The Linley Group’s annual Analysts’ Choice Awards, as a broad portfolio spanning virtually every processor category. The MIPS ‘Warrior’ generation is designed to include an even greater range of functionality to address rapidly changing markets. If Imagination does as great a job with the new MIPS generation as it has done with PowerVR GPUs, then the industry will have another strong player in the CPU IP space.”

Since completing the MIPS acquisition earlier this year, Imagination has completed integration of its CPU engineering teams, nearly doubling the resources working on leading-edge MIPS CPU development. The company is deploying significant investments in MIPS development, including tools, compilers, debuggers, operating systems, software and more. Imagination is developing the MIPS presence in key segments such as mobile by continuing to grow the MIPS ecosystem, and by exploiting open operating systems and emerging trends toward architecture neutrality and portability.

Imagination Technologies Full Year Results 2012/13

IMG today announced FY results:

Strong unit shipments resulting in 49% growth in royalty revenue; organisation strengthened for next stage of growth

Imagination Technologies Group plc (LSE: IMG, “Imagination”, “the Group”), a leading multimedia, communications and processor technology company, today announces results for the year to 30 April 2013.

The Group’s partners shipped 700m units consisting of 535m (2012: 325m) from Imagination excluding MIPS Technologies, Inc. (MIPS) and 165m from MIPS in the 12 weeks since the business was acquired on 7 February 2013.

Financial Highlights

• Group revenue up 19% to £151.5m (2012: £127.5m) including £8.2m from MIPS*
  • Technology revenue increased 28% to £125.7m (2012: £98.2m)
    • Royalty revenue up 49% to £95.1m (2012: £63.8m) including £5.6m from MIPS*
    • Licensing revenue of £29.1m (2012: £34.4m) including £2.6m from MIPS*
  • Pure revenues of £25.8m (2012: £29.3m)


• Adjusted pre-tax profit** of £34.3m (2012: £36.8m)


• Reported pre-tax profit of £12.2m (2012: £28.5m)


• Adjusted earnings per share** 9.4p (2012: 10.1p restated***)


• Reported earnings per share 2.4p (2012: 8.0p restated***)


• Net cash balance of £45.6m (2012: £60.7m)
  • Net cash included £56.3m held to settle MIPS patent sale tax liability – paid on 14 June 2013

* Reflects revenues from 7 February 2013 to 30 April 2013
** The reconciliation from reported results to adjusted results is set out in Note 3.
*** See note 6.

Business Highlights

Technology business

Royalties and design wins

• Partner chips shipped 535m units, excluding MIPS (2012: 325m), up 65% - saw substantial growth in H2 to 298m units (H2 2012: 202m)


• Mobile phone and tablet markets grew very significantly, TV/STB rapidly accelerating with other segments showing steady growth


• Momentum maintained in chip design win growth with 158 active partner chips (2012: 136); 84 in production (2012: 60)


• Average royalty rate (excluding MIPS) maintained in H2 despite significant volume ramp-up and strong lower-end handset demand, as high end devices market continues to show good growth


• Next generation graphics products - Series6 (‘Rogue’) - now shipping

Licensing

• As announced in our trading update on 2 May 2013 licensing was influenced by transitory market changes and regional consolidations impacting on customer base and timing of deal closure
  • Many new and extended agreements with existing partners including Allwinner, Greenplug, Intel, LG, MediaTek, Realtek, Renesas, Samsung, ST, ST-Ericsson, TI and Toumaz
  • Several new partners added including Entropic, Ineda, Metaio and Socle


• Over 20 important customer engagements involving around 35 silicon IP (intellectual property) core licenses
  • Including graphics, video, vision, broadcast/connectivity and processor silicon IP cores, as well as V.VoIP (video and voice over IP) technologies


• Continued active pipeline of prospects across all IP families – multimedia, processor, communications and cloud technologies

Acquisition of MIPS

• Acquisition for $100m in cash - completed on 7 February 2013


• Accelerates Group’s presence in the substantial and growing CPU/processor IP market


• Expands IMG’s broad range of SoC IP


• 165m units shipped since deal completed


• Revenue of £8.2m since 7 February 2013, generating a profit of £1m - synergies exceeding prior expectations

Pure business

• As previously announced the UK and some export markets continue to be tough in the short-term


• On-going DAB adoption worldwide and growing demand for connected audio


• Continued strategic development and pathfinding role
  • Focus on development of technologies for digital broadcast, cloud connected devices for home audio streaming and automation
  • New Pure wireless streaming products including Jongo family launched

Hossein Yassaie, Imagination’s Chief Executive said:

“Last year marked a number of key strategic developments by Imagination. We saw a notable jump in unit shipments and we also implemented a programme of significant investment in technologies, people and infrastructure to support our five year growth programme.

“In particular, the MIPS integration is progressing very well and customer reaction to the acquisition and the technology roadmap has been very positive.

“We have established leading positions in two of the fastest growing global markets – smartphones and tablets. In smartphones we are on course to maintain strong market share, whilst we provide the technology for many of the leading tablets.

“We are also well positioned to address the growing requirement for the existing and emerging categories of devices for home entertainment, digital health, automotive, security and utilities markets whilst meeting their ever-expanding range of communication needs.

“We have started the year well and are on course to see over 650m units (excluding MIPS) shipped in the current financial year - another significant step towards our 1bn unit shipment target in 2016."

Full, more detailed statement is here:

http://www.imgtec.com/corporate/presentations/190613/Imagination-Full-Year-Results-Statement-June-2013.pdf

Presentation Slides :

http://www.imgtec.com/corporate/presentations/190613/Imagination-Full-Year-Results-Presentation-June-2013.pdf

The financials were no surprise given the IMS last month, so the focus was on the outlook mainly. I'll post CC notes later, but here are some of the more interesting parts of the rns:

'Among the key agreements, there were significant new licenses or extensions with existing partners,including Allwinner, Greenplug, Intel, LG, MediaTek, Realtek, Renesas, Samsung, ST, ST-Ericsson, TI,Toumaz and continuation of a number of long-term subscription license arrangements with certain key partners'

Comparing this list to the H1 list, it appears LG, Samsung, Intel and STM signed new agreements in H2 - either extensions (most likely) or new licenses. Would be interesting to have more detail on the Samsung/LG licenses for obvious reasons. 

'It is appropriate to clarify two areas of partnerships. Firstly we continue to have a strong and on-going partnership with Intel Corp, who are also a significant shareholder. As is normal we cannot provide specific details on various projects but we can confirm that we have many existing and future projects on-going with Intel and expect this partnership to result in growing and significant volume shipment across many markets now and in the future. Also Intel’s recent success at Samsung with devices incorporating our technologies is a significant development indicating that the mobile market is opening up to other processor architectures. With respect to TI we expect their transition out of the mobile segment to both take some time and for the partnership to strongly continue in the new areas of focus for TI which we believe will be of significant value to Imagination. Additionally our other partners active in the mobile segment are indeed extending their business to support some of the opportunities TI leaves open as it transitions its business.'

Important given that Intel Baytrail will use in-house graphics and analysts writing off future volume from TI.

'There have been many significant product announcements in mobile phone and tablet segments during the period and we are aware of several other important products from key OEMs that we expect to be launched in the very near future in these and other segments. The Group has continued to see momentum in design wins for its PowerVR graphics technology across Series5/5XT and Series6. The Group’s new generation technology, Series6, has once again been acknowledged by many key partners as the market leader and has already secured over 20 committed SoCs. Several of our partners and our own prototype chips reached silicon and have demonstrated very strong characteristics in performance and power. Independent industry reports have confirmed that our technology has significant competitive advantages in these key metrics. We saw the first Series6 based product in the form of the latest LG smart TV and we expect to see several other end-user products using this technology to begin shipping in volume during the current calendar year.'

Important to say these things given the perception that Rogue products are late 'out of the gate' and clearly Qualcomm  doing great things with Snapdragon 800/Adreno 330 - Rogue'd products need to firmly re-affirm IMG as the leading edge GPU provider

'In TV and STB market areas we are now seeing accelerated progress with smart TV’s from LG and Sony starting shipment recently, with others to follow.'

Market share should increase with new Mediatek cores and also ramp up of MStar using IMG. Toshiba etc. down the line.

'SoC design wins are the driver for future partner chip shipments and royalty revenue growth. Strong continuing momentum saw new partner SoC design wins (excluding MIPS) increase to 158 (net of obsolescence) (2011: 136). Clearly the design win momentum was maintained despite the fluctuation in licensing revenue. Of these, 84 are shipping or beginning to ship, with the balance still in design. The latter will be the driver for significant further royalty revenue growth.These committed devices are continuing to diversify across Imagination’s partners and key market segments.

With respect to end-user products there have been important launches from several key players in the last few months, particularly in phone, tablet and TV/STB segments. We expect to see further major product launches from other key OEMs, including high profile devices from leading OEMs and for these to span across mobile, tablet and TV/STB segments. There are other notable design wins in China that will further drive our strong position in the tablet market overall.'

'As previously explained the revenue from licensing deal closure was behind plan during the second half due to regional issues and certain customers changing course in the short-term.'

Much better (and logical/credible) explanation of the licensing shortfall. IMG learning.

Best of all, not a hint of 'lumpiness' in the entire RNS !

IMG ended the day up 19p (reversing initial drop) on volume of >3m shares, hopefully a sign of sentiment change.

END

Imagination signs license agreement with Cavium for Imagination’s latest MIPSr5 architecture

A couple of days before the full year results, IMG put out its first MIPS rns license agreement with Cavium Inc.

Cavium’s New OCTEON III family of processors feature latest Imagination Technologies MIPSr5 architecture

Imagination Technologies (IMG.L), a leading multimedia, processor, communications and cloud technologies company, today announced that long-time MIPS licensee Cavium, Inc. (NASDAQ: CAVM), a leading provider of highly integrated semiconductor products that enable intelligent processing for networking, communications and cloud infrastructure, has licensed and incorporated the latest Release 5 MIPS architecture (MIPSr5) features, including hardware virtualization, in all members of its ultra-high-performance 1 – 48 core OCTEON® III family of products.

Jim Whittaker, EVP, Processor Group, Imagination, says: “With MIPS, Cavium has created some of the industry’s highest performance and most advanced 64-bit multi-core processors for networking, wireless and storage. We’re now working even more closely with Cavium to take MIPS, the industry’s most successful and widely deployed 64-bit architecture, to even higher levels of performance and innovation. Imagination’s ownership of MIPS has significantly increased the level of investment in, and support for, MIPS CPU IP core development across the entire range of 32-bit and 64-bit solutions, with a focus on hardware, software, tools and ecosystem. We are delighted that Cavium has reaffirmed its commitment to MIPS as a result.”

M. Raghib Hussain, corporate VP/GM and CTO, Cavium, says: “The MIPSr5 architecture enhancements from Imagination combined with Cavium’s in-house design expertise will help create the most advanced MIPS 64-bit processor in the industry and will serve to further extend our leadership in the network infrastructure market.”

For more than 20 years, the 64-bit MIPS64 architecture has powered some of the industry’s most innovative networking and communications products, supported by a broad and mature infrastructure and ecosystem. The MIPS64 architecture is already at the heart of a wide range of Cavium’s OCTEON processors, and now will also power Cavium’s OCTEON III family of 1 – 48 core processors that deliver over 100Gbps of application performance per chip, and provide among the highest compute power of any standards-based communications processor chip with 120GHz of 64-bit compute processing per chip.

Imagination signs license agreement with Toshiba

At the recent IMS CC (ie. the one with the illogical statement and irate analysts) the CEO HY pointed to imminent agreements with new partners which were 'significant and strategic' in nature. The first of the new partners were revealed today , household name Toshiba (an existing MIPS licensee):

Imagination signs license agreement with Toshiba for range of Imagination’s technologies

Imagination Technologies (LSE: IMG.L), a leading multimedia, processor, communications and cloud technologies company, reports that it has signed a license agreement with Toshiba Corporation (TOKYO: 6502) for a range of technologies from Imagination’s Ensigma connectivity and PowerVR graphics and video families.

Toshiba will deploy the technologies in a range of connected SoC (system on chip) devices targeting several consumer electronics markets.

Under the terms of its licensing arrangements, Imagination receives license fees and royalty revenues on shipment of SoCs incorporating Imagination's IP.

END

Well done IMG.

Clearly a big license win, which ideally should have closed in FY 13, but instead gets FY 14 off to a good start. Hopefully we'll get more new significant partners announced shortly.

HY has been in the press quite a bit of late , such as this article in the Telegraph;

http://www.telegraph.co.uk/finance/newsbysector/epic/arm/10108809/Imagination-targets-ARMs-smartphone-chip-monopoly.html

The target is 20-30% of new CPU design wins (excl. PC) within 5 years.